Construction costs are the highest they’ve ever seen in the past 50 years, with contractors and homeowners alike feeling the pinch. Renting equipment, such as a SmartLift glass manipulator can help reduce costs.
Data from the U.S. Census Bureau indicates that construction costs went up by 17.5% from 2020 to 2021. It’s the highest jump on a year-on-year basis since 1970!
Furthermore, compared to 2019, costs in 2021 were 23% higher, with many companies blaming this on supply chain issues, inability to meet labor demands, and excessive inflation. Needless to say, this has disrupted the supply chain as a whole, with contractors finding it difficult to purchase and maintain heavy equipment.
In FY 2022, the construction equipment market is likely to be valued at $121 billion, jumping up from $115 billion from the previous year. The U.S. market is expected to flourish at 4.5% CAGR in the next decade. Some of the main drivers behind this expansion include the rising costs of equipment and the rapidly increasing costs of maintenance services.
Despite the negative impact of the COVID-19 pandemic on the market as a whole, construction equipment rental prospects continued to grow. Renting equipment, such as a SmartLift®, is an excellent way for contractors to save money in the long run and ensure timely completion of projects.
Here are just some of the many ways that companies can save money by renting glass manipulators like the SmartLift instead of purchasing heavy equipment.
1. Renting Equipment is Always Cheaper Than Buying
Over the past few years, maintenance costs have increased significantly for heavy equipment. The total cost of ownership is considerably higher than the upfront cost of renting equipment. Instead of tying up capital in making equipment purchases, businesses can use that money elsewhere.
Renting allows businesses to not only save a considerable amount of money, but it also helps them gain access to advanced equipment without having to pay a significant sum of money.
2. Reduces Maintenance and Repair Costs
A major benefit of renting equipment, such as a SmartLift, is that it allows contractors to keep their maintenance and repair costs low. Contractors end up spending thousands on a monthly basis on repairs and maintenance.
Contractors must spend a significant amount of money to maintain machinery, even those units that are not in regular use. As a result, they end up spending thousands just to ensure that their equipment remains in optimum condition, even when it’s not in use.
However, if you choose to rent equipment, you don’t have to worry about all of that. The rental company bears the costs associated with maintenance and repairs. In case the machine breaks down, you can simply contact the company and ask for a replacement. This also reduces downtime and ensures that the project is completed on time with minimal hassle.
3. No Worries About Accounting Depreciation
Every piece of equipment must depreciate over time. Depending upon the useful life of an item, the depreciation is recorded on a yearly basis. At the end of the year, you’ll have to book depreciation, which ultimately makes it difficult for contractors to recover their initial cost when they choose to resell.
The scrap value comes into play, and companies are usually expected to upgrade their equipment on a regular basis after every few years. But, if you choose to rent, you don’t have to worry about booking depreciation.
This way, you can just write off the cost of rental as an expense. You won’t have to worry about your bottom line being affected either.
4. Greater Flexibility
Arguably the biggest advantage of renting a SmartLift is that it allows contractors to make more flexible business decisions. In the current economic climate, it’s important for businesses to avoid tying up resources into fixed assets.
These are expensive machines, and if you tie up capital into machinery, it could limit your company’s ability to take on larger projects. Instead, if you rent equipment, you could easily take on larger projects, allocating your resources into projects that make money instead of locking them up into equipment that’s not regularly used.
5. Curtail Additional Expenditure
When you invest money into heavy equipment, it’s important to understand that there are additional costs attached. For instance, in addition to the large initial investment of purchasing your own glass manipulator, you’ll also have to worry about spending extra for maintenance, and safeguarding your equipment against theft or damages.
It’s also imperative that you designate a suitable storage spot, which means additional rent. And, to top it off, there’s the cost of transportation that you have to worry about. While they may seem like smaller standalone expenses, the figure quickly balloons up when you put it all together.
Why stress about the logistics or the additional costs when you can just rent the SmartLift and have it delivered straight to the worksite? Avoid the stress and the costs!
6. Easily Exchange Your Equipment
SmartLifts are available in different sizes. Depending upon the nature of the task, you’ll want to rent one of an appropriate size. But, if you have already purchased one, I will it’ll obviously limit your ability to take on certain projects.
More importantly, returns are difficult to process if you buy something that you don’t need or that you can only use for one project. For instance, if you bought a model that can only be used for a specific project or has other limitations then you are essentially stuck with that machine. Purchasing these machines limits your flexibility in having the right glass mover for the right project.
However, if you rent you SmartLift through Smart Lift Solutions you can easily exchange it for a specific size or model of your choosing with minimal hassle!
Rent Your SmartLift From Smart Lift Solutions
It’s easy to understand that there are distinct advantages in renting over buying, especially when it comes to expensive equipment like glass manipulators. If you’re looking to rent a SmartLift® for your next project, Smart Lift Solutions has a full complement of models and sizes available, including both indoor and outdoor models!